Illustration by Chris Gash
One of the many drawbacks of record-low interest rates is that they have made creating an income stream in retirement significantly more complicated. Retirees and near-retirees can no longer rely on certificates of deposit and U.S. Treasuries to provide reliable, risk-free income. Interest rates are so low that these investments no longer keep up with inflation, which means investors effectively lose money over time. Likewise, the traditional 60-40 portfolio 60% stocks and mutual funds and 40% government bonds has fallen out of favor with some analysts because of the abysmal returns from the bond portion.
That creates a conundrum for older investors who are reluctant to increase their exposure to an uncertain and volatile stock market. But the financial services industry specifically, the insurance industry has an antidote: annuities that provide higher returns than you’ll earn from CDs or government bonds, with limits on how much you can lose in a mark
The New Normal: More advisers are abandoning traditional offices to work from home
After more than a year of working remotely, financial advisers and their clients are embracing the upside of virtual interactions and remote worksites.
May 10, 2021 5 MINS
With the pandemic-induced remote work rules and social distancing now into its second year, a growing number of financial advisers are embracing the idea of working from home as just plain working.
While the forced shutdowns hurt a lot of industries and individual businesses, financial planning in general not only survived but in many ways thrived through the increased efficiencies of virtual interactions.
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